EXCITING NEWS: TNG WhatsApp Channel is LIVE…
Subscribe for FREE to get LIVE NEWS UPDATE. Click here to subscribe!
The Nigerian National Petroleum Company Limited (NNPCL) has denied any intentions of hiking the retail price of petrol in the country amid speculations and rising inflation.
The country’s annual inflation rate surged to 24.08 per cent in July from 22.79 per cent in the month of June, according to data released by the National Bureau of Statistics (NBS) on Tuesday.
Responding to circulating reports that petroleum pump prices could surge from the current N617 per litre to a range between N720 and N750, the NNPCL released a statement on its official platform refuting the claims.
“Dear esteemed customers, we at NNPC Retail value your patronage, and we do not have the intention to increase our petrol motor spirit (PMS) pump prices as widely speculated.
“Please buy the best quality products at the most affordable prices at our NNPC Retail stations nationwide,” the NNPCL said.
It would be recalled that in May, the NNPCL adjusted its pump price as a direct consequence of the removal of petroleum subsidy as announced by President Bola Tinubu in his inaugural address on May 29.
Following this announcement, the NNPCL directed its outlets across the country to vend fuel between N480 and N570 per litre, an increase of almost 200 percent from the initial rate of N185.
The surge in petrol price immediately set off a chain reaction, triggering a rise in transportation fares and the cost of goods and services by varying degrees.
In July, the cost of petrol at NNPC Retail outlets further rose to N617 per litre in Abuja and other major cities in the country and the company attributed the spike to the sway of ‘market forces.’
The Group Chief Executive Officer of NNPC, Mele Kyari, had explained that the oil sector’s deregulation ushered in a new era of market-driven pricing dynamics.
“We have the marketing wing of our company. They adjust prices depending on the market realities. This is really what is happening; this is the meaning of making sure that the market regulates itself so that prices will go up and sometimes they will come down also. This is what we have seen, and in reality, this is what the market works,” Kyari said.
However, as the country’s refineries remain non-operational, the reliance on importing refined fuel subjects the cost of petroleum to the fluctuations of global market dynamics.
Industry experts and consumers have expressed concerns that the state-owned oil company’s assurance might not hold true if market conditions shift.